What Is a Guaranteed Loan?
A guaranteed loan, as the name suggests, is a loan that is almost guaranteed to be approved by anyone who applies for it. While it doesn't mean that everyone who applies for the loan will receive it, it maximises the chances of approval and ensures that applicants with not-so-perfect credit will still be considered for the loan.
Most lenders offer guaranteed loans to UK residents looking for fast cash to cover unexpected expenses or urgent needs. This is a short-term loan that is offered to anyone with just soft credit checks and affordability checks at slightly higher interest rates than other mainstream loans.
How to Get Guaranteed Loans in the UK?
To get guaranteed loans in the UK, there are a few criteria that are considered.
- Have fair to good credit - While bad credit is not an automatic disqualifier, it can make your application slightly less likely to be approved. A fair to good credit will indicate that you're a responsible borrower and have handled credit in the past responsibly. This will ensure that you can easily get a guaranteed loan any time you need it.
- Stable source of income - Most lenders requires that you have a stable source of income in order to be approved for a guaranteed loan. This can either be employed or an active pension plan. Lenders need to ensure that you will have the means to pay off your loans and will not default on them.
- No recent defaults - Any recent defaults on your credit report will likely disqualify you from getting a guaranteed loan. Lenders want to see that you have been responsible for credit in the past and are capable of repaying your debts.
- Acceptable debt-to-loan ratio - To be approved for a guaranteed loan, your debt-to-loan ratio must be acceptable. This means that you cannot have too much debt in comparison to the amount of money you are requesting to borrow. Lenders want to see that you are not overextending yourself financially and will be able to repay your loan without any difficulty.
Can I Apply for Guaranteed Loans With Bad Credit?
A bad or low credit score means that you might be considered a high-risk borrower by most lenders. But that doesn't mean that you can't get guaranteed loans with bad credit.
There are many UK lenders who offer these types of loans to applicants with not-so-perfect credit, especially if the loan is deemed to be an essential expense and likely to be repaid in time. However, the lenders check for your affordability and history of defaulting to ensure you can repay the amount on time.
Applying for a Guaranteed Payday Loan
In order to apply for a guaranteed payday loan, you need to fulfil certain basic criteria as below:
- You are over 18 years of age.
- You are a permanent resident of the UK.
- You have an active bank account.
- Your income is enough to repay your loan in time along with any other ongoing financial obligations.
If you meet all these criteria and can provide proof of your ability to repay the loan, you can apply for guaranteed loans with bad credit at any online lender today. Below are the steps that you may need to follow to apply for a guaranteed loan via PaydayLoansUK.
Step 1: Fill Out the Application Form Online
You need to fill out an application form on our website. This will require you to provide some basic personal and financial information related to your loan.
Step 2: Select the Right Lender
Depending on your needs, our system will generate a list of pre-approved lenders who will probably offer you a guaranteed loan of up to 5000 pounds. You can compare and find the perfect lender to connect with.
Step 3: Get Approved
Once you accept the offer, wait for it to be approved. The lender may carry out a credit check before approving your guaranteed loan.
Step 4: Receive Your Money
If everything checks out, the money will be deposited into your bank account as quickly as possible.
Want to Get a Loan?
Representative Example: Rates from 43.1% APR to 1333% APR. Minimum Loan Length is 1 month. Maximum Loan Length is 36 months. Representative Example: £1,200 borrowed for up to 75 days. Total amount repayable is: £1506. Interest charged is 0.34% per day, amounting to £306, annual interest rate of 124% (variable). Representative APR: 49.7% (variable).
How to Increase the Chances of Loan Approval?
Even guaranteed loans cannot always be guaranteed, as lenders will evaluate your financial situation and credit history before approving your loan. But there are some things that you can do to increase the chances of approval for your loan.
- Ensure you meet the basic eligibility requirements: As mentioned above, most lenders require that you be over 18 years old, a UK resident, and have a regular income source. These factors must be satisfied in order to be eligible for the loan.
- Always provide authentic information: Any mistakes or omissions in your application may lead to rejection. Therefore, it is important to carefully and accurately fill out all required information on the loan application form.
- Understand your credit score: A low credit score might make you ineligible for a guaranteed loan, but there are certain things that you can do to improve your score quickly. Consult with a financial expert to understand your credit score and work on improving it.
- Choose the right loan amount: It is important to only borrow the loan amount that you need and can afford to repay. Borrowing too much or too little might lead to the rejection of your loan application.
- Make sure you can afford it: Almost all lenders make affordability checks before approving a loan. Therefore, it is important to be aware of your income and other financial obligations to determine whether you can afford the loan. Applying for a loan amount that you cannot afford to pay back might lead to serious issues down the line adversely affecting your credit score.
With these tips, you can improve your chances of approval for guaranteed loans and get the money that you need.